The Benefits Of Buying Bitcoin With A Credit Card
There are a few key benefits of buying Bitcoin with a proper credit card:
| 1. You can buy Bitcoin with a credit card from anywhere in the world.2. Credit cards are one of the most popular methods of payment, so youre likely to find a lot of exchanges that accept them.3. Fees for buying Bitcoin with a credit card tend to be lower than those for other methods, such as bank transfers.4. The exchange rate is usually quite good when you buy Bitcoin with a credit card. |
How Do You Buy Bitcoin With A Credit/debit Card
The truth is, buying bitcoin with a credit or debit card is pretty easy. We also recommend against doing it, as youll often be charged a number of fees you wouldnt have to pay otherwise. This is particularly true with credit cards use a credit card to buy bitcoin, and the network may process the transaction as a cash advance, rather than a normal purchase.
Heres a step-by-step explanation of how its done:
Advantages And Disadvantages Of Using A Credit Card For Buying Bitcoin
Obviously, there is no perfect payment method in all senses some take longer to transfer funds, others require higher trading fees, and so on. So, you need to select the one that best suits your requirements. With this in mind, before you get started, below you can find the advantages and disadvantages of buying Bitcoin via credit card.
Advantages
- Several heavily regulated brokers and crypto exchanges approve credit cards as a payment option.
- Its a more user-friendly and straightforward method of purchasing cryptocurrencies.
- Because of being quicker than other payment methods, credit cards give more security in these terms.
- With credit cards, there may be some limitations on the amount you can buy to help you invest with caution.
Disadvantages
- It may negatively affect your credit score.
- Crypto trading platforms may apply higher fees for credit cards.
- Some Brokers and exchanges may also limit how much BTC you can buy with a credit card.
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Is It Risky Giving Up My Id In Order To Buy
It depends how much you trust the exchanges. Just like any information you give up online, there is always the risk that it can be hacked or stolen from the website you give it to.
One thing that Bitcoin exchanges have going for them is that because they are constantly under attack, they have some of the best security and protections in place to protect against the hacking of your personal info.
There is always risk with anything related to information online. Even Yahoo was hacked and information on 400 million accounts was stolen.
Buy Bitcoin Instantly Via A Reputable Exchange
CEX.IO was one of the first platforms to enable fiat-to-crypto transactions with payment cards. Since our inception in 2013, weve chosen to be a regulated cryptocurrency exchange.
Our company is registered in the United Kingdom and maintains status as a Money Services Business in FinCEN . CEX.IO offers highly secure services, including strong anti-DDoS protection and level 2 PCI DSS to ensure that customer funds and personal data are protected. Moreover, two-factor authentication contributes to the strong security posture of the platform.
CEX.IO is not just a crypto exchange but an ecosystem of various crypto services. The simple navigation on the website allows everyone to find what they need quickly and easily. The platform, therefore, enables you to buy bitcoin in a preferred way without having to waste time or worry about security issues.
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How To Buy Bitcoin At Cexio: A Step
The first step is registration, where you need to enter a valid email address and set a strong password. Dont forget to enable two-factor authentication to make your account even more secure. Note that only one account per user is allowed. If you are already registered, then just log in to your account to buy crypto.
The next step is account verification. Different verification levels open access to various payment methods, and establish new limits for deposits and withdrawals. For card payments, you need to complete identity verification at a minimum, or the first stage of verification. You can find more information about payment options and verification limits on our page.
After account verification, you will be able to buy and sell cryptocurrencies in several ways:
- Instant Buy/Sell
- Exchange in the CEX.IO mobile app
The Instant Buy/Sell service is one of the most convenient and fastest ways to buy bitcoin on CEX.IO. It was designed to make crypto purchases with debit and credit cards straightforward. The whole process takes a few minutes.
In order to buy bitcoin instantly with a debit card via Instant Buy/Sell, follow the next steps:
Go to the page on the CEX.IO website
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Bitcoin Indacoin And Credit Card
Benefits: great support and the website is available all across the world
Drawbacks: high deposits
Indacoin is a UK-based cryptocurrency exchange that allows users worldwide to buy Bitcoins with a debit card. Indacoin is another organization where you can buy Bitcoin with a credit card. The minimum sum is around 50 dollars, and the first-week restriction is 500 dollars. After two weeks, the restriction will decrease to 2000 dollars. Soon, after one month, the will be no restrictions. In case you would like to use your credit/debit card, you will need to verify your phone number by a five-digit Pincode: it is placed on your CC statement. The verification process is pretty quick and easy.
I havent tried out the platform on myself, so I cant guarantee that everything is 100% valid. Another point to mention is that although the website claims that it takes no charges, its exchange rate is very high due to CC processing.
Taxation On Bitcoin Earnings In The Us
As we have already mentioned, the US Internal Revenue Service applies taxes for Bitcoin as digital currencies are classified as property. So, every time you get rewards from trading Bitcoin, you must inform the body about your capital gain and be taxed accordingly.
Depending on the period you hold your BTC before you sell it and gain capital, the taxes applied for the cryptocurrencies can be of two kinds short-term and long-term capital gains. Each type of capital gain is taxed differently, so you need to check the IRSs website to know how your assets will be taxed.
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How Else Can I Buy Cryptocurrency
Again, it’s possible to buy cryptocurrency with a credit card, but most large U.S. credit card issuers dont allow it, nor do some major cryptocurrency exchanges.
A better and more common way to pay for cryptocurrency purchases with dollars is an electronic transfer from a bank by linking a bank account to the exchange or setting up a wire transfer. Many exchanges also allow you to pay for crypto purchases with other crypto. You could sell Bitcoin to buy Ether, for example.
Buy Bitcoin With A Credit Card Through Coincorner
Pros: Easy to use for beginners, supporting mobile app
Cons: High administration fees on deposits, not available worldwide
CoinCorner is a Bitcoin broker established in 2014, located in the Isle of Man. The exchange servicesseveral countries around the world. You can buy up to £50 of Bitcoin without any verification, but much higher limits are available for verified users. CoinCorner also has a supporting mobile app that allows you to send and receive Bitcoins from your account using your mobile phone.
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How To Use Coinmama
1. Get a Bitcoin wallet, as Coinmama doesnt hold the Bitcoins for you.2. From Coinmamas homepage, choose how many Bitcoins youd like to buy. Enter the price either in BTC, USD, EUR or in other currencies. Alternatively, you can choose one of the offered packages.3. Click Buy and you will be taken to the sign-up page.4. After you fill out your initial details, youll need to go through an additional verification by submitting a photo ID. Verification is usually pretty quick .5. Verified users can buy bitcoins pretty easily with your credit card through the friendly interface. I suggest you use Visa or Mastercard since its the fastest option. With level 3 verification you can buy $7,500/day and up to $40,000/month.6. Confirm how much Bitcoin you wish to buy.
7. Next youll need to enter your own Bitcoin address.
8. Finally, enter your payment details and place your order.
Withdrawing Bitcoin From A Brokerage Account
After getting your Bitcoin, you can create a personal Bitcoin account and withdraw your cryptos to store them on a Bitcoin wallet more safely. But whether you can do this or not depends on how you made your purchase. If you trade BTC through Contracts for Differences, you actually dont own the asset, and simply speculate on the price of the asset. Therefore, in this case, you cannot withdraw Bitcoin and send it to a personal wallet.
In contrast to this, buying Bitcoin outright on a crypto exchange will give you the opportunity to transfer your coins to a more secure private wallet. Firstly, you need to find a platform that provides a BTC wallet account, create an account, and complete the transfer. You can find more information on this topic in our guide How to Open Your Free BTC Account.
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The Following Steps Will Get You Started:
When logged into your account, go to the Payment methods page
Select Add a Credit/Debit Card at the top of the page
Enter your card information
If needed, add a billing address for the card
You should now see a window that says and a Buy Digital Currency option
You can now buy digital currency using the Buy/Sell Digital Currency page anytime
Plus500 Buy Bitcoin Outside The Us With No Commissions
Plus500 is among the most reputable CFD trading platforms, with customers from more than 50 countries. Its a commission-free broker with pretty competitive spreads, a high leverage ratio, and a simple to use web-based and mobile trading app. Also, Plus500 is a highly trustworthy platform as it has licenses from such regulatory financial institutions as ASIC, FCA, and CySEC.
Regarding its non-trading fees, the broker does not apply any withdrawal fees but charges currency conversions. There is also an inactivity fee of $10/month if you dont show any activity within three months. Plus500 requires a minimum deposit of $100, which you can transfer through multiple payment options, including credit cards.
The broker offers web trading via its WebTrader online platform and offers trading apps for Android, iPad, and iPhone users. Along with bitcoin and cryptocurrencies, the broker supports a wide selection of other assets, including ETFs, indices, forex, commodities, etc.
Pros
| $100 |
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Benefits Of Buying Crypto With A Credit Card
The biggest benefit of buying crypto with a credit card is the convenience. Making ACH transfers from you bank account can be tedious, since youll need information like your routing and account number. If you typically have your credit card with you in your wallet, it can be easier than authorizing a bank transfer.
Security could be another reason to consider using a card over a bank transfer, Anastasio says. Anytime your information is compromised you can easily have your card reissued with a new number, which is much easier and less time consuming than trying to update your bank account information.
Rewards may also be a potential benefits, but few credit card issuers allow you to earn points or cash back on cash advances. Plus, all the transaction fees involved in funding crypto with a credit card will quickly wipe out any benefit you get.
How Do You Buy Bitcoin With A Credit Card
The steps to buying Bitcoin online with a payment card are straightforward. Once you find a fair exchange, like our partner coinify, all you do is:
- Signup by creating an account on the platform that will include your personal and payment information.
- Verify your identity with a passport, national ID, or other documents. This is standard for most platforms to prevent illegal money laundering and is required for larger transfers.
- Choose a wallet where you are going to send and store your bitcoin.
- Place an order, and the Bitcoin will be automatically transferred to your wallet.
The platforms that accept credit cards almost universally accept debit cards. Online purchases rarely distinguish between the card types as long as they are issued by a large credit company like Visa or Mastercard.
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Bitcoin Bitstamp And Credit Card
Benefits: the organization is very reliable and has various payment solutions, and it is available all across the World
Drawbacks: relatively high deposits, not user friendly, and the verification process is slow.
The company was founded in 2011, so it is considered to be one of the most reliable and valid Bitcoin crypto markets where one can buy Bitcoin. Another advantage of this trading website is that it has a license from the Luxembourg ministry of finance. The organization works with debit card payments in a partnership with Simplex. Bitstamp is a worldwide company that has a wide range of nations accessible: all countries all over Europe, the USA, and some of the Asian and South American countries.
How to Use Bitstamp:
- Get on the website and snap on the Deposit
- Right after, you should choose the option Credit Card and deposit the needed sum
- When the deposit is cleared, choose either to Buy or to Trade BTC
- Fill out the sum you desire to get and click on Buy/Sell BTC.
To finish your order, you will have to utilize a 3D Secure debit card . Besides, several banks might treat your credit/debit card deposit as a cash advance. In this case, your bank or CC provider may charge an additional fee.
How To Store Bitcoin On A Digital Wallet
Cryptocurrencies are primarily stored in digital wallets that are specially designed for this purpose. These are decentralized apps or physical devices that provide a safe place for your coins and are almost impossible to hack.
So, when you buy bitcoin as a long-term investment, its not secure to leave them on your exchange account. Instead, you had better build your personal crypto wallet and transfer your coins into it. You can find more information about how to create a bitcoin wallet in our guide, Best 5 Bitcoin Wallets.
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Buy Bitcoin With A Credit Card Through Indacoin
Pros:Good support, available to most countries worldwide
Cons: High exchange rates
Indacoin is a UK-based exchange that allows users worldwide to buy Bitcoin and more than 100 other cryptocurrencies with a credit card. Purchases must be between $10 and $6,000.
In order to use your credit card, youll need to verify your phone number and ID verification, including a selfie. The process is fairly simple, but I havent tried the exchange out myself, so I cant vouch for it.
Even though the site states that it doesnt charge any explicit fees, its exchange rates are pretty high due to credit card processing.
Risks Of Buying Crypto With A Credit Card
Crypto is risky in general. You can easily lose money, and people often do.
If youre looking to buy crypto with a credit card because have the cash on hand to buy it outright, it can become even more risky. We strongly recommend only investing in crypto with money youre not afraid to lose. If you dont have the cash in your bank account to fund your crypto investment, you might want to reconsider whether to buy it at all.
If you decide to invest in crypto, you should do so with the full knowledge that you could easily lose your investment in the short-term or the long-term. Thats because cryptocurrency is highly volatile. Nobody knows what will happen to crypto assets and their values over any length of time. It all depends on when you buy and when you sell, and adding credit card charges to the mix only reduces your chances of turning a profit.
Just as an example, a single bitcoin cost a little over $7,200 in Jan. 2020, surged to a new all-time high of over $68,000 in Nov. 2021, then dropped back down under $30,000 per coin as of May 2022.
Imagine if you bought a large amount of crypto with your credit card in Nov. 2021, paid all the required fees and interest, then watched the price of your investment drop by 50% during the subsequent six months. You would still owe the massive credit card bill, yet the value of your crypto wouldnt come close to covering the full cost.
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